The Baumol-Tobin analysis suggests that
A) velocity is relatively constant.
B) the transactions component of the demand for money is negatively related to the level of interest rates.
C) the speculative motive is nonexistent.
D) velocity is unrelated to the transactions motive.
B
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If Country A can produce an extra plane by giving up two boats, and Country B can produce an extra plane by giving up three boats, then
A) Country A has an absolute advantage in producing planes and a comparative advantage in producing boats. B) The two countries have no incentive to trade with one another. C) Country A would like to trade with B, but B cannot gain by trading with A. D) Country B has a comparative advantage over Country A in the production of planes. E) Country A has a comparative advantage over Country B in the production of planes.
Market systems can be evaluated as efficient or inefficient, but not as fair or unfair
a. True b. False Indicate whether the statement is true or false
Which of the following is not a component of the M1 money supply?
A. demand deposits B. large-denomination (more than $100) bills C. interest-earning checking deposits D. outstanding balances on credit cards
The seasonally adjusted unemployment rate
A. reports only seasonal unemployment. B. is impossible to compute since no one knows what the seasonal component equals. C. is another name for structural unemployment. D. removes the seasonal variation from the unemployment rate.